New Delhi: The Supreme Court on Wednesday overturned the Competition Commission of India’s (CCI) ₹202 crore penalty imposed on Amazon over its 2019 investment in Future Coupons Private Limited (FCPL). The court also instructed that any amount recovered or deposited by Amazon in connection with the case must be refunded within eight weeks.
A Bench comprising Justices Vikram Nath and Sandeep Mehta delivered the ruling while hearing Amazon’s appeal against the earlier decisions of the National Company Law Appellate Tribunal (NCLAT) and the CCI.
Background of the Dispute
The case stemmed from Amazon’s 2019 acquisition of a 49 per cent stake in Future Coupons Private Limited, which was linked to Future Retail Limited. In December 2021, the CCI suspended its approval of the transaction and imposed a ₹202 crore penalty, alleging that Amazon had concealed material information while seeking regulatory clearance.
The regulator had argued that Amazon failed to fully disclose the economic and strategic objectives behind the investment and allegedly suppressed its interest in Future Retail.
NCLAT Had Earlier Upheld CCI Order
In June 2022, the NCLAT upheld the CCI’s decision, including the penalty imposed on Amazon. The appellate tribunal agreed with the regulator’s findings that complete disclosures regarding the company’s strategic plans involving Future Retail were not made.
The penalties consisted of ₹200 crore and an additional ₹2 crore under separate provisions related to disclosure obligations under the Competition Act, 2002.
Amazon Maintained All Information Was Shared
Amazon consistently denied allegations of withholding information and maintained that all relevant documents connected to the investment were submitted before the competition watchdog. The company had also argued that revoking the transaction approval could negatively impact investor confidence in India.
The legal conflict intensified after Future Group announced a ₹24,713 crore deal with Reliance Retail in 2020, which Amazon opposed through multiple legal proceedings in India and Singapore.
Supreme Court Grants Relief to Amazon
With the latest ruling, the Supreme Court has now set aside both the CCI’s December 2021 order and the NCLAT’s June 2022 judgement. The court further directed that any amount deposited or recovered from Amazon pursuant to those orders must be returned within eight weeks.
According to reports by Business Standard, PTI, and other media agencies, the judgement marks a major relief for Amazon in its long-running dispute connected to the Future Coupons investment.
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